I like the thinking behind this and we could even make a new rule out of this.
Basically, I think it is time for a rule that says "if you do things in-game, mean them the way you do them.". Which means if you duel then it's a duel and not a training match. If you challenge someone for a death duel, you really want one party to die. If you create a religion, it must be a religion, and if you declare war you really want to bash in some heads.
I think the "do what you mean" rule would be easier to understand than a "don't do things purely for game-mechanics" one, while meaning pretty much the same thing.
Sounds reasonable.
Should the Magistrates apply such a rule right now, to this case? Do you want us to be the enforcers?